Bybit CEO Claims MiCA License Alone Insufficient for Profitability in Europe

Acquiring a Markets in Crypto Assets license is a crucial step for operating in Europe, but it is not enough to guarantee profitability, according to Bybit CEO Ben Zhou. The current MiCA framework has limitations, as it only allows for fiat-to-crypto and crypto-to-crypto transactions, excluding other essential products like derivatives and tokenized assets. To offer these services, companies need to obtain additional licenses, such as MiFID II and Electronic Money Institution licenses. Even Bybit, the world's second-largest cryptocurrency exchange by trading volume, is not yet profitable in Europe and is waiting to acquire the necessary licenses. Zhou estimates that it may take around two years for the company to become profitable. The upcoming closure of the MiCA grandfathering period is expected to lead to market consolidation, as smaller crypto companies may struggle to meet the regulatory requirements. The MiCA license itself is also subject to changes, with some regulators pushing for stricter control and increased oversight. Bybit has chosen to work with Austria's FMA, a stringent regulator, which Zhou believes will pay off in the long run. The company remains neutral about the potential involvement of the European Securities and Markets Authority in the regulatory process.